Terra Considering Options with Lycos

By Matthew Hicks  |  Posted 2004-04-29 Print this article Print

Terra Networks, which bought Lycos in 2000, confirms that it is looking at alternatives for the U.S. Internet group, which reportedly include a possible sale.

Terra Networks SA confirmed Thursday that it is weighing options for its U.S. Lycos Internet unit, but it stopped short of saying whether a sale of the division is imminent. Media reports this week indicated that the company is considering selling the Lycos division. Citing sources familiar with the talks, the Financial Times on Thursday reported that Terra Networks is seeking the advice of investment bank Lehman Brothers and that it has received offers of about $200 million. "Terra Networks is currently involved in a reviewing and analyzing process on some of its operating units," the Barcelona, Spain-based Terra Networks said in a filing with the U.S. Securities and Exchange Commission. "As part of this global process, different alternatives are being analyzed for Lycos U.S. No definitive decision has been adopted so far."
In 2000, Terra Networks bought U.S. portal company Lycos Inc. for $12.5 billion, calling the combined company Terra Lycos. Lycos U.S. operations are based in Waltham, Mass., and include such sites as Wired News, Tripod.com, HotBot.com and Angelfire.com.
Read more here about HotBots launch in March of a Web search toolbar. Terra Networks in 2002 reported a net loss of $1.7 billion. It is part of Telefónica SA, a leading telecommunications company. Check out eWEEK.coms Enterprise Applications Center at http://enterpriseapps.eweek.com for the latest news, reviews, analysis and opinion about productivity and business solutions. Be sure to add our eWEEK.com enterprise applications news feed to your RSS newsreader or My Yahoo page:  
Matthew Hicks As an online reporter for eWEEK.com, Matt Hicks covers the fast-changing developments in Internet technologies. His coverage includes the growing field of Web conferencing software and services. With eight years as a business and technology journalist, Matt has gained insight into the market strategies of IT vendors as well as the needs of enterprise IT managers. He joined Ziff Davis in 1999 as a staff writer for the former Strategies section of eWEEK, where he wrote in-depth features about corporate strategies for e-business and enterprise software. In 2002, he moved to the News department at the magazine as a senior writer specializing in coverage of database software and enterprise networking. Later that year Matt started a yearlong fellowship in Washington, DC, after being awarded an American Political Science Association Congressional Fellowship for Journalist. As a fellow, he spent nine months working on policy issues, including technology policy, in for a Member of the U.S. House of Representatives. He rejoined Ziff Davis in August 2003 as a reporter dedicated to online coverage for eWEEK.com. Along with Web conferencing, he follows search engines, Web browsers, speech technology and the Internet domain-naming system.

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